Consumers feel the spirit of Christmas

Consumers are increasingly comfortable making big-ticket purchases as retailers prepare for the all-important Christmas season.

The ANZ-Roy Morgan consumer confidence index rose for a second month, up 3 points at 121 in November, with households more optimistic about the wider economy and happier to buy a major item.

Of the 998 people surveyed, a net 4 per cent said they expected good economic conditions in the coming 12 months, an improvement on the net 3 per cent who predicted things to get worse in October. That ended a four-month run where pessimists outnumbered optimists. And they were also more upbeat about the economy's long-term prospects, with a net 15 per cent anticipating good times over the next five years, up from 10 per cent in October.

More importantly for retailers, a net 41 per cent said they thought it was a good time to make a major purchase, up from a net 36 per cent in October.

“Things are pretty good for New Zealand households right now. They have a lot of debt, certainly, but jobs are pretty easy to find, there’s been some decent wage growth and the housing market is lifting,” said ANZ New Zealand economist Miles Workman.

The measure came a day after ANZ’s business confidence gauge showed a sharp rise.

Workman said a composite gauge of the two surveys indicated that economic growth should bottom out around 2 per cent.

But the consumer confidence survey showed fewer households felt better about their own financial health. A net 17 per cent said they were better off now compared to a year ago, down from 20 per cent in October.